What is a Testamentary Trust?

What is a Testamentary Trust?

Our Lake Jackson estate planning attorneys can assist you in creating a testamentary trust to ensure assets are distributed according to your wishes.

A Will is one of the most important parts of estate planning but it does not provide much control over how and when assets are distributed. At the Cordoba Law Firm, PLLC, we can guide you in other options available. Alongside your Will, our experienced Lake Jackson wills and probate lawyers can assist you in creating a testamentary trust, shielding you from creditor claims and providing better control over beneficiary distributions.

Creating a Testamentary Trust

At the Cordoba Law Firm, our Lake Jackson wills and probate attorneys use trusts as an important part of estate planning. This legal tool allows you to make beneficiary distributions according to specific guidelines, shielding you from creditor claims, and prevent time-consuming and costly Brazoria County Probate Court proceedings.

There are several types of trusts available. As the name implies, a testamentary trust is created as part of your last will and testament. Whereas a living trust exists over the course of your life, a testamentary trust goes into effect only in the event of your death. It allows you to make changes at any point up to that time. Once you pass, it becomes irrevocable. To create a testamentary trust, you need:

  • A grantor or settlor, which is the person who creates the trust.
  • Assets to transfer in it, which may include property, business interests, funds in financial accounts, or even life insurance proceeds;
  • A beneficiary, which is the person or organization who will receive the assets in the trust at the time of your death;
  • A trustee, which is the party that administers your trust until your beneficiaries take over this task.

Testamentary Trust Benefits

One of the major benefits testamentary trusts offer is the ability to specify exactly how and when beneficiary distributions are made. At Cordoba Law, we can create a testamentary trust that allows you to do the following:

  • To designate assets for minors or as yet unborn beneficiaries, with distributions once they reach 18 or a later age;
  • To designate certain funds held until they can be used for college costs or buying a newly married couple their first home;
  • To protect troubled beneficiaries by setting aside funds so that they can get the help they need;
  • To convey the rights to business interests or investments once the beneficiary has met certain goals or other criteria.

Smart Asset advises that it is the ability to put conditions on distributions that make testamentary trusts such an important part of estate planning.

Contact Our Lake Jackson, Texas Wills and Probate Attorneys

To find out more about testamentary trusts, contact the Cordoba Law Firm, PLLC. Request a consultation with our Lake Jackson wills and probate attorneys today.